>
>

Network as a Service (NaaS) Market Size, By Service, By Application, By Organization Size, By End Use, Growth Forecast 2025 – 2034

Download Free PDF

Network as a Service Market Size

The global network as a service market was valued at USD 16.5 billion in 2024 and is estimated to register a CAGR of 28.9% between 2025 and 2034.
 

Network as a Service Market

The emergence of edge has greatly complemented the network as a service market. With companies shifting their strategies towards decentralized data processing, NaaS also facilitates access to distributed networks with less latency to facilitate real-time processing of data. The increasing requirements for edge computing especially in healthcare, manufacturing, IoT, and other sectors necessitate the infrastructural shift to more flexible and dynamic networks. Businesses are able to customize their networks in accordance with the growing edge computing needs with NaaS, thus enabling the uptake of the next technology and catalyzing market expansion. The edge computing market was worth USD 1 3.4 billion in 2023 and is projected to have a CAGR of above 28% from 2024 to 2032.
 

The movement towards hybrid cloud models is providing NaaS with greater market opportunities. As more companies take up hybrid cloud models for enhanced ease of use, NaaS becomes essential in delivering the connectivity needed for on-premises, private, and public cloud environments. This business model gives firms the ability to quickly adjust the scale of their network services to their requirements without large initial expenditure. Due to the presence of agile and scalable network infrastructure, NaaS provides companies with greater control on their resources, facilitating the progress towards hybrid environments and further contributing to the growth of the market. Statista says that the market for hybrid cloud is projected to increase from USD 85 billion in 2021 to USD 262 billion in 2027.
 

Network as a Service Market Trends 

The reality of the 5G deployments is initiating and rolling out the NaaS market. With 5G becoming cannot-do-without for many, enterprises and service providers require a network infrastructure that accommodates high speeds and low latency to keep up with the rising data volumes and networked devices. NaaS vendors are in the perfect position to meet these needs by offering configurable, high bandwidth and elastic networks, which are propitious for 5G networks. There is a very strong need for such interconnections especially in enhanced cellular networks including IoT, AI, and edge computing devices and that is enabling substantial growth in the NaaS market. As claimed by 5G Americas, 3GPP certified networks around the world include 706 LTE and 341 5G commercial networks.
 

The use of digital technology in the business’ operations and structure is seen as a leaver for the network as a service market growth. More organizations focusing on improving customer experience through digitization means there is growing demand for network services that are both flexible and scalable. NaaS helps companies to scale networks according to the requirements of the digital strategies thus enables better performance and provides more versatility. The latest trends have determined increased use of cloud applications, data analytics, and automation tools all stresses the need for NaaS thus supporting the growths of the market. The worldwide revenue for digital transformation is predicted to accelerate from USD 2.5 trillion in 2024 to USD 3.9 trillion by 2027, according to Statista. This represents a cumulative growth of USD 1.4 trillion throughout the course of three years.
 

The network as a service market is affected by the security and data privacy issues. When organizations switch to a NaaS model, they also have to deal with issues like data in transit security and compliance with GDPR, CCPA and others. But this requires a wait as encryption technology advances along with multi-layered security and other industry requirements. This specific concern will continue to restrain the pace of progress in adoption of cloud networks together with the lack of evolution in the fundamental design of networks.
 

Network as a Service Market Analysis

Network as a Service Market Size, By Organization Size, 2022 – 2034, (USD Billion)

Based on organization size, the market is divided into large enterprise and SME. In 2024, the large enterprise segment held a market share of over 64% and is expected to cross USD 115 billion by 2034.
 

  • The increasing number of large enterprises in the European Union is a key driver for the NaaS market. According to statista, with over 43,504 large enterprises (in the non-financial business economy in 2024, there is a growing demand for scalable, flexible, and efficient networking solutions. As these enterprises scale their operations, they The growing count of large companies in the European Union is one of the major drivers for the NaaS market. In accordance with Statista, there are more than 43,504 large enterprises in non financial business economy in 2024, which creates a need for elastic and effective networking solutions. When these large companies grow in numbers, they need cheap and efficient network control which is exactly what NaaS provides, and this in turn boosts network as a service market growth.
     
  • NaaS solutions are being heavily employed by large enterprises because of the need for efficient flexible network infrastructures that can adopt to changing market circumstances. As businesses expand and internationalize, NaaS easily allows them to reallocate precious networking resources without needing to extensively invest in the physical hardware. Such flexibility enhances business resilience and cost control, which makes NaaS a considerable solution especially for larger companies with rapidly changing needs.
     
Network as a Service Market Share, By End Use, 2024

Based on end use, the network as a service market is categorized into IT & telecom, BFSI, manufacturing, government & public sector, healthcare, retail and others. The IT & telecom segment held a market share of 32% in 2024.
 

  • Digital transformation is making a positive impact on the IT and telecom industries, paving the way for new opportunities in the market. Telecom companies are using NaaS to strengthen their market position in the cloud-first world by enabling the delivery of network services that are both flexible and scalable. As firms continue their migration to the cloud, there is a clear need for strong and agile network solutions, which are within the ambit of telecom operators. The increase in demand for 5G, edge computing and high bandwidth has further driven the need for NaaS that helps telecom companies expand their services and improve retention.
     
  • The NaaS solutions are being rapidly accepted owing to the proliferation of IT services that have a scope of digital transformation. Due to the demand from enterprises for more complete, automated, and effective network solutions, the combination of NaaS with IT services has allowed firms to improve operational efficiency and reduce costs. The growth of IT Services is important as it is predicted that there will be a dollar 1.5 billion market by 2025 Statista.
     

Based on service, the network as a service market is divided into LAN as a service, WAN as a service, VPN as a service, communication as a service. WAN as a service segment dominated the market accounting for over USD 60 billion in 2024.
 

  • The increase in remote work has greatly contributed to WAN as a Service growth within the NaaS sector. To continue doing business in a hybrid and remote working environment, companies require safe, flexible, and dependable networking systems. Remote team management becomes easier as Organizations offer flexibility using cloud-based Integrated Networking Services, driving the NaaS industry further to growth. Statista states in 2023, out of all industries, IT had the largest number of remote workers globally accounting for 67.8 percent of employees being fully or partially remote.
     
  • With WAN as a Service, a modern business can optimally grow its national service and seamless internal network system as they internationalize. Generally, WANs require a huge operating capital set aside but WANaaS allows for a pay as you go structure. This low-cost structure while building networks virtually doesn't only save up on expenses but allows firms to rapidly create and utilize networks across different parts of the globe, hence increasing the popularity of WAN in the NaaS market.
     

Based on applications, the network as a service market is divided into UCaaS/video conferencing, virtual private network, cloud and SaaS connectivity, bandwidth on demand, multi-branch connectivity, wan optimization, secure web gateway, network access control, and others. UCaaS/video conferencing segment is projected to grow at the CAGR of over 31% during the forecast period.
 

  • The increasing acceptance of video conferencing and UCaaS solutions alongside remote and hybrid working systems is stimulating UCaaS and video conferencing solutions within the NaaS ecosystem. Organizations are now looking for understandable cloud-based solutions to advance mobile and online communication, thus enhancing the need for expandable, dependable, and safe communication systems to meet the demand for UCaaS or video conferencing solutions.
     
  • UCaaS and video conferencing allow businesses to communicate smoothly in all locations, and as firms move their borders internationally there is a growing demand for reliable global communication solutions. This need is further leading to the expansion of the NaaS market as the low latency, strong security and easy connectivity that are required need for all these tools are pushing the expansions of NaaS infrastructure.
     
U.S. Network as a Service Market Size, 2022 -2034, (USD Billion)

U.S. dominated the global network as a service market with a major share of over 78% in 2024. Advanced technological infrastructure and the rapid adoption of cloud computing in U.S. is propelling NaaS market growth. The current demands for networking solutions that can scale up and are versatile are ecstatic because the country is incorporating a digital shift at an unprecedented rate in the IT, healthcare, finance and retail sectors.
 

Also, there is the active rollout of 5G and edge technology, further increasing the need for a high reliable low latency network and still there is the ever expanding number of connected devices. As American businesses start using more of these current technologies NaaS solutions offer the required speed and performance that enables their growth.
 

Many European companies have begun the hunt for secure and regulatory compliant solutions, further driving the growth of NaaS. In order to meet United States requirements, these companies are obliged to adhere to General Data Protection Regulation and "data privacy censoring" regulations. This translates into business opportunities for NaaS providers as data security becomes an integral part of all compliant networking solutions.
 

Network as a service market for the Asia Pacific region is growing rapidly mainly because of the ongoing digital transitions as well as the shift towards adopting cloud computing solutions. The deployment of 5G networks in China, India and Japan is augmenting the demand for more dynamic and elastic network solutions. Therefore, as these businesses begin adopting IoT, AI, and big data solutions they need ever more reliable networking infrastructures that can withstand the increased data load.
 

Network as a Service Market Share

AWS, Cisco, AT&T, Citrix Systems, Aryaka Networks, Tata Communications, and Extreme Networks hold a significant market share of over 32% in the network as a service industry. AWS has established itself as a competitive force in the ongoing networking solutions race by capitalizing on its innovations. A number of services including AWS Direct Connect and AWS Transit Gateway are able to offer businesses with scalable and secure network infrastructure. Seamless cloud and cloud-to-cloud operations are possible through AWS’s integration of its NaaS solutions with a variety of cloud services. Also, AWS is using its worldwide infrastructure to provide low latency solutions in addition to the AWS networks which further reinforces its status as a leader in the NaaS market.
 

The network as a service market includes numerous players, one of which is Cisco who is pursuing a strategy pertaining to the provision of high scale and highly adaptive networking solutions such as those included in the Cisco Meraki and the Cisco SD-WAN. The company is working on scaling its NaaS services through end to end automation while integrating AI and other security features. Given its extensive global reach along with its experience in providing network infrastructure, Cisco is well-positioned to offer businesses with secure and high performance networks as they migrate to cloud ecosystems. Cisco’s ongoing reinvestment strategies in 5G, edge computing and IoT only continue to cement its competitive edge in the NaaS oriented markets.
 

The industry for NaaS is a two-tiered structure comprised of international firms and regional actors which allows for cross-regional servicing for enterprises, telecom operators, and cloud services. International players have acquired a foothold through mergers and acquisitions, and the provision of a wider range of NaaS solutions, including VNFs, SDN, and flexible bandwidth management. They have also excelled in innovation and equipped their architectures with SS, IoT, and 5G which has enabled them to occupy leading positions on the global market, especially in developing countries with accelerated digitalization.
 

Local providers stay competitive by adapting clients’ expectations, being both market and cost efficient, for example by meeting regional laws and addressing available infrastructure challenges. On the contrary, other providers are innovating or looking for partnerships with international players due to a need for flexible pay as you go networking solutions and advanced security that simplifies the process of managing networks. To further enhance the protection of their products and improve competition with international firms, the country’s local players would be able to strengthen their technology through mergers and acquisitions. This merger and acquisition trend will provide local vendors with further competitive advantages in the NaaS market and stimulate more countries to utilize NaaS technology.
 

Network as a Service Market Companies

Major players operating in the network as a service industry include:

  • Akamai
  • ALE
  • Amazon Web Services
  • Aryaka
  • AT&T
  • AWS
  • Cisco
  • Citrix
  • Extreme Networks
  • Tata Communications
     

Network as a Service (NaaS) Industry News

  • Megaport Limited announced plans in October 2024 to introduce cloud connectivity services in Milan through Points of Presence at notable data center operators such as Atlas Edge, Data4, Equinix and Retelit. With this plan, customers and partners of Megaport would be able to tap into a global market of business through Italy to increase their business revenues while aiding their acceleration towards digital transformation using the company’s private, scalable and vendor-neutral NaaS platform in Italy.
     
  • In July 2023, Lumen Technologies unveiled a new significant addition to its Network-as-a-Service platform. With the limited scope on offering, Lumen Internet On-Demand served as the first addition to be offered on the platform. Gradually, the security services of DDoS, SASE, and Edge services will also be accommodated within the Lumen NaaS platform. The aim is to make it a fully dematerialized, that is free of human touch and consumed based which in return hopes to enhance the customer’s experience.
     
  • In May 2023, Cloudflare Inc. in collaboration with IT services frontrunner Kyndryl announced a new managed WAN as a Service network. This now enables the marriage of networking services with the Magic WAN platform by Cloudflare that now has DDoS mitigation and additional connectivity added to it enhancing the migration of users to modernised IT infrastructures.
     
  • In May 2023, saw Megaport announce a collaboration with global network operator Element Critical whose primary purpose was the development of a NaaS platform. Through this partnership, clients are enabled to use Megaports cloud interconnection and software defined networks cabling services to connect their equipment with different branch offices and several cloud service providers through several cloud network ports. Such an methodology increases users efficiency in cost and management control.
     

The network as a service market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Mn) from 2021 to 2034, for the following segments:

Market, By Service

  • LAN as a service
  • WAN as a service
  • VPN as a service
  • Communication as a service

Market, By Application

  • UCaaS/video conferencing
  • Virtual private network
  • Cloud and SaaS connectivity
  • Bandwidth on Demand
  • Multi-branch connectivity
  • Wan optimization
  • Secure web gateway
  • Network access control
  • Others

Market, By Organization Size

  • Large enterprises
  • SME

Market, By End Use

  • IT & telecom
  • BFSI
  • Manufacturing
  • Government & public sector
  • Healthcare
  • Retail
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Nordics
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • Southeast Asia 
  • Latin America
    • Brazil
    • Mexico
    • Argentina 
  • MEA
    • UAE
    • South Africa
    • Saudi Arabia

 

Authors: Preeti Wadhwani,
Frequently Asked Question(FAQ) :
How much of the global market is dominated by the U.S.?
The U.S. network as a service market held a major share of over 78% in 2024 driven by advanced technological infrastructure and rapid adoption of cloud computing across various sectors.
Who are the major players in the network as a service industry?
What is the market share of large enterprises in the network as a service industry?
How big is the global network as a service (NaaS) market?
Network as a Service Market Scope
  • Network as a Service Market Size
  • Network as a Service Market Trends
  • Network as a Service Market Analysis
  • Network as a Service Market Share
Related Reports
    Authors: Preeti Wadhwani,
    Buy Now
    $4,123 $4,850
    15% off
    $4,840 $6,050
    20% off
    $5,845 $8,350
    30% off
        Buy now
    Premium Report Details

    Base Year: 2024

    Companies covered: 20

    Tables & Figures: 300

    Countries covered: 21

    Pages: 175

    Download Free PDF

    Top